Motion picture company CMPC designated as KMT affiliate

Taipei, Oct. 9 (CNA) The Executive Yuan's Ill-gotten Party Assets Settlement Committee determined Tuesday at a committee meeting that the Central Motion Picture Corp. (CMPC) is an affiliate of the opposition Kuomintang (KMT) and will freeze its assets, worth NT$11.8 billion (US$380.58 million).

The fact that the CMPC's publications, official documents and relevant materials all bear the words "party-run enterprise" proves that the company is under the substantial control of the KMT, said Lin Feng-jeng (林峯正), chairman of the committee.

As an example, Lin noted that the CMPC was featured in the sixth volume of a book series on party-run cultural businesses published in 1972 by the KMT's Culture and Communications Committee.

In addition, the registration documents the CMPC filed with the Ministry of Economic Affairs for its establishment in 1953 also show that all its shareholders were appointed by KMT headquarters, according to Lin.

Other evidence that can prove the CMPC was under KMT control is that Central Investment Holding Co., one of the main enterprises owned by the KMT, sold 82.56 percent of CMPC's shares at NT$65 per share to former KMT lawmaker Alex Tsai (蔡正元), which was below market value.

As a result, Central Investment incurred a loss of NT$1.8 billion from the sale, according to Lin.

Lin said that CMPC representatives will be invited to meet with the Ill-gotten Party Assets Settlement Committee Thursday to discuss the aftermath of the decision in a bid to reduce its effects on the company's employees.

The operations of the four theaters currently run by the CMPC and movie-goers' rights will not be affected, Lin added.

In response, CMPC said in a statement issued Tuesday that it will seek legal recourse for administrative action to ensure that the rights of the company's shareholders and employees are protected.